Crystal Palace winger Michael Olise has signed a new four-year deal with the club amid interest from Chelsea.

On Tuesday, it was reported that the Stamford Bridge club had activated a release clause in the region of £35m for the French Under-21 international.

But Palace chairman Steve Parish confirmed on Thursday that the London-born 21-year-old would be staying put.

Olise joined from Reading on a five-year-deal in 2021 but was in Chelsea's youth system before leaving aged 14.

He is currently recovering from a hamstring injury that he picked up playing for France in the European Under-21 Championship, but enjoyed an impressive 2022-23 campaign for Palace in which he registered 11 assists and scored two goals in 37 appearances, earning the club's player of the year award.

Chelsea have already signed Moises Caicedo this week for a fee which could reach £115m, while an initial £53m deal for Southampton midfielder Romeo Lavia has also been agreed as the Blues continue a lavish spending spree which has led plenty to wonder how they are abiding by the game's financial rules.

Palace, meanwhile, have lost talisman Wilfried Zaha this summer but began the new campaign under boss Ross Hodgson with a 1-0 win away at Sheffield United.